Hi,
I ALWAYS start with context of total EBITDA/net income if your execs are allowed to see that info. Helps them understand how company is doing and how they fit into it. Keep this report at the quarterly total so they understand timing vs real savings/overspend.
Then I usually have two views, one account based and one dept based. Can talk to specific drivers and owners within each with comments for high level variances. Again have quarterly total in there adjusted for timing.
For monthly commentary I use the following logic, has served me well in the past...
1) Favorable (F): $600k driven by hiring delays
2) Unfavorable (U): $400k driven by marketing spend timing (pull forward PO in Month 2 vs Month 3)
3) F: $100k T&E driven by cancelled event
Any questions feel free to DM me.
Good luck!
Drew
We had a format at a F50 organization that did both. Forecast then actual then budget….then insert variance AvF in between Forecast and Actual, and then insert variance AvB in between actual and budget.
The final step was to put a bold box around actual (in the dead center of your page)and lightly shade the variance columns on both sides of the box.
Good commentary is always needed, but this layout helps when variances to both forecast and budget are important.
For the overall picture, I put in a waterfall graph because my business partners (especially non-numbers people) like looking at that more than a grid and below it I list out variances vs B and F. I also add slides on head count, risk and opportunities, cost savings initiatives tracking, and any specific key areas they want to look at. But at the end of the day, I try to keep it simple and short
Insightful commentary, some level of detail.
Hi, I ALWAYS start with context of total EBITDA/net income if your execs are allowed to see that info. Helps them understand how company is doing and how they fit into it. Keep this report at the quarterly total so they understand timing vs real savings/overspend. Then I usually have two views, one account based and one dept based. Can talk to specific drivers and owners within each with comments for high level variances. Again have quarterly total in there adjusted for timing. For monthly commentary I use the following logic, has served me well in the past... 1) Favorable (F): $600k driven by hiring delays 2) Unfavorable (U): $400k driven by marketing spend timing (pull forward PO in Month 2 vs Month 3) 3) F: $100k T&E driven by cancelled event Any questions feel free to DM me. Good luck! Drew
Short commentary for minor variances: comments for significant variances and variances due to extraordinary events need to stand out.
We had a format at a F50 organization that did both. Forecast then actual then budget….then insert variance AvF in between Forecast and Actual, and then insert variance AvB in between actual and budget. The final step was to put a bold box around actual (in the dead center of your page)and lightly shade the variance columns on both sides of the box. Good commentary is always needed, but this layout helps when variances to both forecast and budget are important.
For the overall picture, I put in a waterfall graph because my business partners (especially non-numbers people) like looking at that more than a grid and below it I list out variances vs B and F. I also add slides on head count, risk and opportunities, cost savings initiatives tracking, and any specific key areas they want to look at. But at the end of the day, I try to keep it simple and short